FX Trade: computers vice human traders

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FX Trade: computers vice human tradersAccording to the Boston-based consulting firm Aite Group LLC, electronic dealing, which accounted for 20 percent of all currency transactions in 2001 and 66 percent in 2013, will increase to 76 percent within five years. About 81 percent of spot trading – the buying and selling of currency for immediate delivery – will be electronic by 2018, Aite said. Electronic trading probably will lower costs for customers and boost transparency of pricing, according to Cormac Leech, an analyst at Liberum Capital Ltd., in London. It may also squeeze margins for banks, he said. Two of the biggest currency-trading banks – Barclays Bank and UBS Bank – are using different approaches to defend their share of the market. Barclays Bank has developed an addition to its electronic platform that gives clients foreign-exchange rates aggregated from external sources. Zurich-based UBS Bank is allowing clients to connect directly with its sales and trading representatives, in addition to accessing research covering fixed income, credit, equities products and foreign exchange. Cyprus presents a very good gateway to enter EU FX market by offering broker licenses and investment services which embraces so-called concept of the EU passport. Cyprus offers flexible solutions and cost advantages over other EU countries.